National Insurance Employer Secondary Contributions
From the 6th April 2018 to 5th April 2019
All employers make a contribution to their employee’s National Insurance when certain PAYE limits are reached.
The employer contribution is referred to as a secondary contribution, it is an expense new employers often forget to take into account when employing staff.
Employers make a contribution on gross employee earnings over the Secondary Threshold (ST) £162 per week
The percentage of the contribution depends on the amount of the employee’s gross earnings, their age and the national insurance letter allocated to the employee by HMRC.
On the 6th April 2016 HMRC introduced the letter H to calculate employer national insurance secondary contributions for Apprentices under 25
Using the letter H for eligible apprentices, the employer will not have to make a contribution to national insurance until the Apprentice Upper Secondary Level (AUST) is reached, gross pay £866 per week.
|Earnings at or above LEL up to and including the ST||0||0||0||0||0|
|Earnings above ST up to and including the UEL/UST/AUST||13.80||13.80||0||13.80||0|
|Balance of earnings above the UEL/UST/AUST||13.80||13.80||13.80||13.80||13.80|
LEL (lower earnings threshold) £116
ST (secondary threshold) £162
UST (upper secondary threshold under 21’s) £892 and above
AUST (apprentice upper secondary threshold under 25’s) £892 and above
UEL (upper earnings limit) £892 and above
National Insurance contributions should NOT be made on earnings below the lower earnings limit
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